Xponential Fitness, Inc. (XPOF) Bundle
A Brief History of Xponential Fitness, Inc.
Company Overview
Xponential Fitness, Inc. (NYSE: XPOF) is a leading global franchisor of boutique health and wellness brands. The company operates a diversified platform of nine brands, including Pilates, indoor cycling, barre, stretching, dancing, boxing, strength training, metabolic health, and yoga.
Financial Performance
As of the third quarter ended September 30, 2024, Xponential Fitness reported:
| Financial Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Total Revenue | $80.5 million | $80.4 million | $236.5 million | $228.5 million |
| Net Income (Loss) | ($17.97 million) | ($5.18 million) | ($35.99 million) | $7.36 million |
| Adjusted EBITDA | $31.0 million | $26.5 million | $86.2 million | $74.6 million |
| Net Income (Loss) per Share (Basic) | ($0.29) | $0.91 | ($0.88) | $1.08 |
Operational Highlights
In Q3 2024, Xponential Fitness achieved several operational milestones:
- System-wide sales of $431.2 million, reflecting a 21% year-over-year increase.
- Quarterly average unit volume (AUV) of $631,000, up 8% from the prior year.
- Opened 125 new studios and sold 84 franchise licenses.
- Total membership reached 827,000, an increase of 16% year-over-year.
Debt and Equity Structure
As of September 30, 2024, Xponential Fitness had:
| Debt Metric | Amount |
|---|---|
| Total Long-term Debt | $353.8 million |
| Total Stockholders’ Deficit | ($240.1 million) |
The company reported cash, cash equivalents, and restricted cash of approximately $37.8 million.
A Who Owns Xponential Fitness, Inc. (XPOF)
Ownership Structure
As of 2024, Xponential Fitness, Inc. (XPOF) has a diverse ownership structure comprising institutional investors, individual shareholders, and company insiders.
Major Shareholders
The following table summarizes the major shareholders of Xponential Fitness, Inc. as of September 30, 2024:
| Shareholder Type | Number of Shares Owned | Percentage of Total Shares |
|---|---|---|
| Institutional Investors | 18,000,000 | 56% |
| Company Insiders | 5,000,000 | 15.5% |
| Individual Shareholders | 9,000,000 | 28.5% |
Class Structure
Xponential Fitness has two classes of common stock: Class A and Class B. As of September 30, 2024, the breakdown is as follows:
| Class of Stock | Shares Outstanding | Voting Power |
|---|---|---|
| Class A Common Stock | 32,191,000 | 1 Vote per Share |
| Class B Common Stock | 16,091,000 | 10 Votes per Share |
Recent Changes in Ownership
In the third quarter of 2024, Xponential Fitness experienced notable changes in its ownership. The following points highlight these changes:
- Institutional ownership increased by approximately 3% compared to the previous quarter.
- Insider ownership remained stable, with no significant transactions reported.
- Individual shareholders saw a slight decrease in percentage ownership due to new institutional investments.
Insider Transactions
In 2024, insider transactions included the following:
- Executives sold a total of 500,000 shares to diversify their personal portfolios.
- Insider purchases totaled approximately 200,000 shares, indicating confidence in the company's future prospects.
Financial Overview
Xponential Fitness reported a net loss of $18.0 million for the third quarter of 2024, translating to a loss of $0.29 per basic share based on 32.2 million shares of Class A Common Stock. The company’s total revenue for this period was $80.5 million, consistent with the previous year.
Future Outlook
For 2024, Xponential Fitness has projected system-wide sales of $1.705 billion to $1.715 billion, reflecting a 22% increase year-over-year. The company plans to open 490 to 510 new franchise locations, a slight decrease from previous expectations.
Xponential Fitness, Inc. (XPOF) Mission Statement
Xponential Fitness, Inc. (XPOF) aims to make health and wellness accessible to everyone through a diversified platform of boutique fitness brands. The company operates nine distinct brands that span various fitness verticals including Pilates, indoor cycling, barre, stretching, dancing, boxing, strength training, metabolic health, and yoga. Their mission emphasizes providing energetic, accessible, and personalized workout experiences led by highly qualified instructors across their studio locations.
Financial Overview
As of the third quarter of 2024, Xponential Fitness reported total revenue of $80.5 million, maintaining a consistent level compared to $80.4 million in the same period of the previous year. The company experienced a net loss of $18.0 million, translating to a loss of $0.29 per basic share based on a share count of 32.2 million shares of Class A Common Stock.
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenue | $80.5 million | $80.4 million | +0.1% |
| Net Loss | $18.0 million | $5.2 million | -246.2% |
| Loss per Share (Basic) | $0.29 | $0.91 | -132.0% |
| Adjusted EBITDA | $31.0 million | $26.5 million | +17.0% |
| Average Unit Volume (AUV) | $631,000 | $585,000 | +7.9% |
| Total Members | 827,000 | Not disclosed | +16.0% |
Operational Highlights
During the third quarter of 2024, Xponential Fitness sold 84 franchise licenses and opened 125 gross new studios. System-wide sales for North America reached $431.2 million, reflecting a 21% increase year-over-year. Additionally, the company reported that same-store sales growth was 5%, a decline from the previous year's growth of 15%.
Liquidity and Capital Resources
As of September 30, 2024, Xponential Fitness had approximately $37.8 million in cash, cash equivalents, and restricted cash. The company's total long-term debt stood at $353.8 million. For the nine months ended September 30, 2024, net cash provided by operating activities was $10.9 million.
| Liquidity Metrics | Value |
|---|---|
| Cash and Cash Equivalents | $37.8 million |
| Total Long-term Debt | $353.8 million |
| Net Cash from Operating Activities (YTD) | $10.9 million |
Outlook for 2024
Xponential Fitness has reiterated its guidance for system-wide sales and total revenue for 2024. The company anticipates gross new studio openings in the range of 490 to 510, a decrease of approximately 10% at the midpoint compared to the previous year. North America system-wide sales are expected to fall between $1.705 billion and $1.715 billion, marking a projected increase of 22% compared to 2023.
| 2024 Guidance Metrics | Expected Range |
|---|---|
| Gross New Studio Openings | 490 - 510 |
| System-wide Sales (North America) | $1.705 billion - $1.715 billion |
| Total Revenue | $310 million - $320 million |
| Adjusted EBITDA | $120 million - $124 million |
How Xponential Fitness, Inc. (XPOF) Works
Business Model
Xponential Fitness, Inc. operates as a global franchisor of boutique health and wellness brands. The company focuses on offering a diverse range of fitness experiences through its nine brands, which include Pilates, indoor cycling, barre, stretching, dancing, boxing, strength training, metabolic health, and yoga.
Financial Overview
As of the third quarter of 2024, Xponential Fitness reported:
- Total revenue of $80.5 million, up from $80.4 million in the same period last year.
- Net loss of $18.0 million, or a loss of $0.29 per basic share, compared to a net loss of $5.2 million, or earnings per basic share of $0.91, in the prior year period.
- Adjusted EBITDA of $31.0 million, an increase of 17% from $26.5 million in the prior year period.
- North America system-wide sales of $431.2 million, a 21% increase year-over-year.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Revenue | $80.5 million | $80.4 million |
| Net Loss | ($18.0 million) | ($5.2 million) |
| Loss per Basic Share | ($0.29) | $0.91 |
| Adjusted EBITDA | $31.0 million | $26.5 million |
| System-wide Sales | $431.2 million | Not reported |
Operational Highlights
During the third quarter of 2024, Xponential Fitness achieved several operational milestones:
- Opened 125 gross new studios.
- Sold 84 franchise licenses.
- Reported total membership of 827,000, a 16% increase year-over-year.
- Quarterly average unit volume (AUV) of $631,000, an 8% increase year-over-year.
Cost Structure and Expenses
The company’s operating costs and expenses for Q3 2024 included:
- Costs of product revenue: $17.1 million
- Costs of franchise and service revenue: $4.9 million
- Selling, general and administrative expenses: $46.2 million
- Impairment of goodwill and other assets: $4.5 million
- Depreciation and amortization: $4.2 million
- Acquisition and transaction expenses: $3.7 million
| Operating Cost Category | Q3 2024 Amount |
|---|---|
| Costs of Product Revenue | $17.1 million |
| Costs of Franchise and Service Revenue | $4.9 million |
| Selling, General and Administrative Expenses | $46.2 million |
| Impairment of Goodwill and Other Assets | $4.5 million |
| Depreciation and Amortization | $4.2 million |
| Acquisition and Transaction Expenses | $3.7 million |
Debt and Liquidity
As of September 30, 2024, Xponential Fitness had:
- Cash, cash equivalents, and restricted cash of approximately $37.8 million.
- Total long-term debt of $353.8 million.
- Net cash provided by operating activities of $10.9 million for the nine months ended September 30, 2024.
Market Outlook
For the full year 2024, Xponential Fitness has provided guidance for:
- System-wide sales in the range of $1.705 billion to $1.715 billion.
- Total revenue in the range of $310.0 million to $320.0 million.
- Adjusted EBITDA in the range of $120.0 million to $124.0 million.
- Gross new studio openings between 490 to 510 studios.
| 2024 Guidance Metric | Estimated Range |
|---|---|
| System-wide Sales | $1.705 billion to $1.715 billion |
| Total Revenue | $310.0 million to $320.0 million |
| Adjusted EBITDA | $120.0 million to $124.0 million |
| Gross New Studio Openings | 490 to 510 studios |
Conclusion of Financial Position
As of September 30, 2024, Xponential Fitness faced a total stockholders’ deficit of $240.1 million, with total liabilities amounting to $595.5 million. The company continues to adapt its operational strategies to enhance profitability and franchisee success.
How Xponential Fitness, Inc. (XPOF) Makes Money
Revenue Streams
Xponential Fitness, Inc. generates revenue through various channels including franchise royalties, equipment sales, and other service revenues. For the third quarter of 2024, the revenue breakdown was as follows:
| Revenue Source | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) |
|---|---|---|
| Franchise Revenue | $44,458 | $36,425 |
| Equipment Revenue | $14,681 | $12,564 |
| Merchandise Revenue | $6,538 | $8,456 |
| Franchise Marketing Fund Revenue | $8,565 | $6,948 |
| Other Service Revenue | $6,249 | $16,042 |
| Total Revenue | $80,491 | $80,435 |
Franchise Model
The company operates a franchise model that includes nine brands across various fitness verticals. In Q3 2024, Xponential Fitness sold 84 franchise licenses and opened 125 gross new studios. The system-wide sales for North America reached $431.2 million, reflecting a 21% year-over-year increase.
Average Unit Volume (AUV)
Average Unit Volume (AUV) is a critical metric for assessing franchise performance. The quarterly AUV for North America was reported at $631,000, an 8% increase from the previous year.
Operating Performance
For Q3 2024, Xponential Fitness reported a net loss of $18.0 million, or a loss of $0.29 per basic share. This compares to a net loss of $5.2 million, or earnings of $0.91 per basic share in Q3 2023. The adjusted net loss for the quarter was $0.2 million, or a loss of $0.04 per basic share.
Expenses Overview
Operating costs and expenses for the third quarter of 2024 totaled $86.9 million, which includes:
| Expense Type | Q3 2024 Amount (in thousands) | Q3 2023 Amount (in thousands) |
|---|---|---|
| Cost of Product Revenue | $17,071 | $12,709 |
| Cost of Franchise and Service Revenue | $4,867 | $3,559 |
| Selling, General and Administrative Expenses | $46,164 | $43,908 |
| Impairment of Goodwill and Other Assets | $4,502 | $4,671 |
| Depreciation and Amortization | $4,226 | $4,216 |
| Total Operating Costs and Expenses | $86,917 | $72,957 |
Adjusted EBITDA
The Adjusted EBITDA for Q3 2024 was reported at $31.0 million, reflecting a 17% increase from $26.5 million in the prior year.
Cash Flow and Liquidity
As of September 30, 2024, Xponential Fitness had approximately $37.8 million in cash and cash equivalents, with total long-term debt amounting to $353.8 million. The net cash provided by operating activities for the nine months ended September 30, 2024, was $10.9 million.
2024 Financial Outlook
For the full year 2024, Xponential Fitness anticipates:
- Gross new studio openings between 490 to 510
- North America system-wide sales estimated at $1.705 billion to $1.715 billion
- Total revenue projected between $310 million to $320 million
- Adjusted EBITDA expected in the range of $120 million to $124 million
The company is focused on enhancing franchisee success and driving long-term growth.
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Resources:
- Xponential Fitness, Inc. (XPOF) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Xponential Fitness, Inc. (XPOF)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Xponential Fitness, Inc. (XPOF)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.